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...I. TITLE:
Kraft Food Inc.
II. POINT OF VIEW
Irene Rosenfield, the Chairman and CEO of Kraft Foods Inc. has to return the company to sustainable growth.
III. STATEMENT OF THE PROBLEM
Company has been incurring drop in sales and revenues
IV. OBJECTIVE
To enhance the company sales and increase its revenues
V. AREAS OF CONSIDERATION
▪ More people are dining-out and food producers are devoting more attention to products designed for restaurants, vending machines and other foodservice providers.
▪ The development of health foods, such as those containing less trans fat or fewer calories, or those containing only organic ingredients.
▪ Enhanced waters containing vitamins or supplements are gaining popularity
▪ Changing diet and decreasing physical activity are believed to be the two most important in causing the recent increase in rate of obesity.
▪ Rising costs of petroleum cause twofold increase in cost for companies in the food industry, which have increases raw materials costs with increased production and transportation costs for food processors.
▪ Domestically Kraft Foods Inc. competes with a number of companies, a few of which include ConAgra Foods, Heinz Company and Sara Lee.
▪ Kraft is also competing with...

...recently become more health conscious (KPMG, 2012b). Besides that, restructuring processes by eliminating unprofitable products and focusing on value added products have been seen across the company (KPMG, 2012b). However, the highly competitive market has put a lot of pressure to Kraft and limits its profit potential. Kraft realised that they cannot fully compete with price and the way that they can do to increase and maintain their market share is through brand loyalty, diversification and increase product volume (Hathaway et al. 2006).
4.3.1.2 Threat of new entrants
The foods and beverages industry has already experienced in a large scale consolidation and move into the mature stage. It is difficult to enter the market with existing firms have already developed within the industry. They have established brand name awareness and earned high levels of customer loyalties. The threat of new entrants is very low and they may find it difficult to compete within this large economy of scale (Hathaway et al. 2006). Even if new comers were able to enter, they might not able to overcome and acquire large market share because they might need to offer superior quality products at low price to compete with Kraft. Also, starting a food and beverage company can be a daunting task with the high start-up costs and fixed costs such as costs of production, distribution networks, and packaging facilities.
4.3.1.3 Threat of substitute...

...﻿The biggest mergers&takeovers: financial background In our presentation we’re going to tell you about the takeover of 1 big confectionery company.
Leader in the confectionery market.
We won’t tell you, which company it is but we’ll show you its’ product instead.
Suppositions? NEWS: Cadbury VS Kraft Foods
What happened to Cadbury and who was it taken over by???
After months of negotiations, Kraft (KFT) announced in 2010 that it would acquire U.K. сonfection giant Cadbury. The takeover bid was $19.5 billion.
Background of Cadbury…
Now a little bit about the history of Cadbury, you’ll know who founded the company and why! Let’s begin.
Cadbury was found in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham. Do you know the word Quaker??? Quaker is a member of a Christian group, called the Society of Friends, that is strongly opposed to violence and war, in other words, Quaker is a Pacifist.
John sold coffee, tea, drinking chocolate and cocoa at his shop as an alternative to alcohol, which he believed was a main cause of poverty.
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate. Soon John’s brother Benjamin joined the company to form Cadbury Brothers of Birmingham. The Cadbury brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854.
John’s sons George and Richard continued to expand...

...Strength
➢ Kraft foods is the world second largest food company since it has the presence in 160 countries with 168 integrated factories, (Geographical presence of Kraft foods )
➢ It has a heritage of business since 1903
➢ The human resource capacity of this company is 97000 which make them the one of largest in the globe,
➢ Kraft foods carries 40 brands which is in the market over 100 years
➢ Country led model of the Kraft foods which lead towards making decisions more faster
➢ Acquisition of Cadbury & LU biscuits which led the strong presence of Kraft foods in the global market because Cadbury had 45000 employees & the presence of the brand in 60 countries , LU biscuit which has 32 manufacturing facilities with 14000 employees which lead more market share , more value or revenue from the segment categories specially in the European region
1. Weakness
➢ Kraft Foods 12.5% ( 2009 ) comes from 5 brands portfolio
➢ Adding the Pan – European centralized management will lead to cultural effect in the organizational structure
➢ The acquisition process of Cadbury bought more negative impact on Kraft food since an UK based company was taken over by a foreign based company
➢ Selling of frozen pizza & post cereal business which...

...Kraft Foods By
Anuradha Ganesh Aashish Tripathi Reetu Bhagat
7/29/2013 1
7/29/2013 7/25/2013
2 2
History and Evolution – Kraft Foods
 Started in 1903 with J L Kraft using a rented horse wagon to purchase wholesale cheese and selling to small stores  1909: J L Kraft & Bros. Incorporated  1914-1916: Buys first cheese plant, begins producing cheese in 3-1/2 and 7-3/4 ounces tins and gets patent for the same  1920: Purchases MacLaren’s Imperial cheese to enter Canada.  1924: Changes name to Kraft Cheese Company  1928: Merges with Phenix Cheese Corporation to form Kraft-Phenix Cheese Corporation which is later acquired by NDPC.  1930-1957: Many name changes till officially becomes Kraft foods division of NDPC  1969: NDPC changes its name to Kraftco. Corporation which later changes to Kraft Inc.
7/29/2013 3
History and Evolution – Contd.
 1988: Becomes part of Philip Morris Companies Inc. to create world’s largest consumer product company which later join general foods with Kraft Inc. to form Kraft General to form the largest food company in US and Canada.  1991-2000: Acquires many companies like Caprisun, Jack’s Frozen Pizza, Nabisco Food Group, Boca Burger.  2010: Sells North American pizza business to Nestle.  Acquires Cadbury's for 19.6 billion USD in the same year.  2012: Splits into two companies -...

...External Analysis of Kraft Foods using Porter’s 5-Forces Model and PEST
MGT 599 Module 2 CASE
EXECUTIVE SUMMARY
Kraft is the number one manufacturer of snacks in the U. S. and the world’s number two food company (Kraft Foods SWOT analysis, n.d.). Our goal is to maintain and improve those statistics.
Results of the Porter’s 5-Forces
There is a low threat of entry of new manufacturers. The food industry is already glutted with companies who rival Kraft. ConAgra ($11.62B revenues in 2012), and Nestle ($93.06B) represent the top across-the-board rivals. The Kellogg Company (13.65B) also holds 34.2% of the cereal market (Kraft Annual Report, 12/31/2011). There is a low availability of substitutes. The devastating drought in the U. S. has caused enormous drops in the supply of crops and animals. With diminished supplies when demand is high, suppliers bargaining power is also medium to high. Poor economic conditions coupled with heightened sensitivity to nutritional values have given customers a medium bargaining power (Lempert, P., 12/21/12).
Results of the PEST analysis
Political unrest in Egypt forced Kraft to suspend operations there (IUF newsier 2012). Likewise, the takeover of the Cadbury company and subsequent closing of the major plan in England have spawned much negativity toward Kraft (Chellel, Kit 5/23/2011). America’s middle class...

...subject.
It is research about Kraft Food Company and their strategic management in many sections. In the first section you will find brief introduction and history about KRAFT. Then, their SOWT analysis with details and explanation to each component: (strength, weakness, opportunity, threat).Finally, a conclusion to the research.
Kraft Food Company
Introduction
Kraft Foods Group, Inc. (NASDAQ: KRFT) is one of the largest consumer packaged food and beverage companies in North America, with annual revenues of more than $18 billion. It is an American grocery manufacturing and processing conglomerate, which is headquartered in Northfield, Illinois, a Chicago suburb.
The company was formed in 2012 by a demerger from Kraft Foods Inc., which in turn was renamed Mondelēz International. The new Kraft Foods Group is a North American grocery business, while Mondelēz is a multinational snack and confectionary company.
Launched as a public and independent company on Oct. 1, 2012, the new Kraft has the spirit of a startup and the soul of a powerhouse. They market an unrivaled portfolio of products in the beverage, cheese, refrigerated meals and grocery categories, primarily in the United States and Canada.
The KRFT stock is a member of the Standard & Poor’s 500 and the NASDAQ-100 stock indices. Also, they have 39...

...The pre hostile acquisition of Cadbury by Kraft Foods
Compare and contrast the preferred styles of Irene Rosenfeld and Todd Stitzer in the context of the pre hostile acquisition of Cadbury by Kraft Foods. You should apply appropriate management and leadership theories to support your arguments.
Consider first Irene Rosenfeld’s leadership Style.
By referring to Hersey’s model of situational leadership model – adapted by JE Chamberlain from Mullins (2007:302) and Hersey et al (2000) followed on from a number of previous writes to develop the model of situational leadership.
Diagram 1 refers: Situational Leadership Model (JE Chamberlain from Mullins)
Autocratic
Laissez-Faire
Democratic
*See P 32 of workbook and P 9 of Profex
* Readiness is a combination of ability, willingness and resources
* Depending on the state of readiness (R1-R4) four corresponding leadership styles are proposed
* S1 - telling
* S2 - selling
* S3 - participating
* S4- delegating
* Leadership is a dynamic form of behaviour and there are a number of variables which affect the leadership relationship
* Leadership characteristics and/or Characteristics of followers
* Nature of the org and/ or External environment
The approach by Hersey et al identifies the situation or circumstances as the key factor in determining which leadership style is the most relevant and appropriate to the two CEO’s.
It is a key...